Comments on: EA Sports EVP Andrew Wilson unloads all shares in the firm for $687,000http://www.vg247.com/2013/05/11/ea-sports-evp-andrew-wilson-unloads-all-shares-in-the-firm-for-687000/
VG247.comTue, 29 Jul 2014 08:36:38 +0000hourly1http://wordpress.org/?v=4.2.2By: SolidGamerSnakehttp://www.vg247.com/2013/05/11/ea-sports-evp-andrew-wilson-unloads-all-shares-in-the-firm-for-687000/comment-page-1/#comment-477165
Sat, 11 May 2013 15:36:41 +0000http://www.vg247.com/?p=365752#comment-477165it would only be insider trading, if Bene would have sold the shares on information that he acquired somehow from the company, that are not available to the public, that would influence the share price.^^

What EA did here is granting him a stock option. That as you correctly wrote can be exercised at any point in time.

Their actual purpose ( when granted by the own company) is to incentivize the manager to increase the shareprice from which he would benefit aswell, as the option would allow him to buy stock at a fixed price ( the difference is his gain/loss).

Its a longterm “reward” for his efforts. Now interesting here would be if he exercised the option right after receiving it or if he held it a few months/years.

If its the latter then its totally fine, as this is their purpose. If its not ( which is unlikely, since no company would issue bonds that far below the stock price, unless this is one of his primary incentives) then one could think that he has indeed some information that is not disclosed.

]]>By: MidlifeAxehttp://www.vg247.com/2013/05/11/ea-sports-evp-andrew-wilson-unloads-all-shares-in-the-firm-for-687000/comment-page-1/#comment-477141
Sat, 11 May 2013 13:31:55 +0000http://www.vg247.com/?p=365752#comment-477141@2 Yeah, my thoughts exactly! I’m surprised it’s not illegal to do that.
]]>By: Stephany Nunneleyhttp://www.vg247.com/2013/05/11/ea-sports-evp-andrew-wilson-unloads-all-shares-in-the-firm-for-687000/comment-page-1/#comment-477140
Sat, 11 May 2013 13:29:36 +0000http://www.vg247.com/?p=365752#comment-477140@1 Yes. As I explained above, a lot of companies allow its employees to purchase a select amount of shares for a set price for a set amount of time. This is as an incentive to invest in the company. Once purchased, the employee can keep the shares or sell immediately – just like with anything else they would buy. I agree it sounds shady – esp with the prices up it *almost* borders on what we would consider insider trading, but apparently, it’s not. SEC rules are rather odd and varied.
]]>By: MidlifeAxehttp://www.vg247.com/2013/05/11/ea-sports-evp-andrew-wilson-unloads-all-shares-in-the-firm-for-687000/comment-page-1/#comment-477136
Sat, 11 May 2013 13:13:26 +0000http://www.vg247.com/?p=365752#comment-477136‘After Bene purchased the stock with his employee discount, he then unloaded those shares for $22.40 each, making $158,500 off the sale. Bene still holds 6,700 shares in EA.’